ashtondav
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Post by ashtondav on Dec 6, 2018 9:49:28 GMT
Hi all I recently pulled 100% of invested funds from Lendy. Call me chicken, but I have previously lost money when Dot Com Bubble had burst and also when Bitcoin plummeted and a few more places. Very hard lessons were learnt. Now that Lendy has 60% of loans turning bad (according to the newspaper articles), I do not wish to risk another minute of it. Now looking at possible other platform(s) to put funds into, I'm puzzled by information. Perhaps someone when recommend the best suitable ones? My requirements: - Must return at least 8% for me to justify the risks. - Must be secured by something. Be it property or otherwise. - Must have a Provision Fund. - Critical MUST! - This is a "parking" for money, not intending to keep there forever, so liquidity is important! Has to have a secondary market or some way of withdrawing funds very quickly. Not keen on paying selling fees though. This SM has to be functional and popular, not in name only! - No investors suffered losses Sit down in your favourite chair, lean back and have a doze. Because you’re dreaming, my friend. lower your sights to 5% to 6% and go for RS or AC.
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ashtondav
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FundingSecure (FS) in Administration
Tax return
Dec 5, 2018 19:03:14 GMT
Post by ashtondav on Dec 5, 2018 19:03:14 GMT
What do I enter on the tax return, just the total interest or do I add/subtract anything on defaults?
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ashtondav
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Post by ashtondav on Dec 4, 2018 15:35:41 GMT
£27,000 invested. In November, £152 in interest, £172 in bad debt, and £323 repayments from defaults. I'm assuming this was due to the sale of defaulting loans?
As I have been withdrawing repayments from ZOPA for more than two years now (from a high of £75,000) I assume that pretty soon i will be left with only non performing loans for the last few months/years of my account.
Even with an early adopter bonus of 1% the rates just aren't competive with AC 30DA, Ratesetter (sometimes), and LendingWorks
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ashtondav
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Post by ashtondav on Dec 4, 2018 15:07:41 GMT
End of month man, me.
I let repayments go on the market at my chosen 5 year rates (6.3% - 6.6%). Anything not lent by the last day of the month goes to Lending Works at 6.5%. £3,900 waved goodbye 4 days ago.
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ashtondav
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Post by ashtondav on Dec 4, 2018 9:49:01 GMT
Google it to read the ft article. Credit card and savings plans to be announced...
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ashtondav
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Post by ashtondav on Dec 4, 2018 9:43:49 GMT
Just received an email from RS inviting me to invest additional funds at market high rates. Clicked the Invest Now button to find the website is down for maintenance. You couldn't make it up! That reminds me of a time in the 80's when shops had just started "price matching". A friend went into a shop to buy a portable TV for £150 only to find out it had sold out. He then went to another shop selling the same model for £200 and asked if they price matched. The store said yes so he proceeded to tell them the the TV was only £150 in the shop down the road. "Why don't you buy it from there" said the shopkeeper. "Because they are out of stock" said my friend. "Well ours are only £150 when out of stock too" said the shopkeeper. 😊
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ashtondav
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Post by ashtondav on Dec 3, 2018 17:26:58 GMT
Not much available on AC at 11%. Good luck with their defaults and "provision fund". Rest assured you won't end up with 11%!
I was simply using the FC IT as a proxy for FC expected returns
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ashtondav
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Post by ashtondav on Dec 3, 2018 17:25:28 GMT
You won't be netting 11% after bad debt on Ac...
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ashtondav
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Post by ashtondav on Dec 3, 2018 13:32:51 GMT
ashtondav - worth remembering though that a significant chunk (third ??) of the investment trust is invested in FC America which may be performing differently to UK, and will be subject to currency fluctuations when reporting NAV in GBP. Granted. But it remains a decent approximation - and need a decent alternative!
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ashtondav
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Post by ashtondav on Dec 3, 2018 10:38:03 GMT
The returns of the investment trust must approximate lenders' returns. The IT asset value increased 6.2% in 2016 6.5% in 2017 and .......... 2% year to date. These returns include re invested income and capital. Add on a % or so for the IT costs and you would expect the average lender to getting say 3% this year. Total return since inception in november 2015 has been 15%.
The IT has a trailing dividend yield of c6%.
So, quite a distance from "loss making".
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ashtondav
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Post by ashtondav on Nov 28, 2018 14:16:24 GMT
My dashboard shows my annualised return as 6.4% and my estimated fully diversified return as 7.4% so underperforming but not much. Mine still shows my annualised return as 8.5% and and my estimated fully diversified return as 8.4%, believe it or not. Sorry, I don’t understand. How is that possible? I assumed the annualised return was your lifetime net interest after bad debt expressed as a return on your capital, annualised.
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ashtondav
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Post by ashtondav on Nov 27, 2018 16:31:45 GMT
I only started last autumn when the new system was introduced. My dashboard shows my annualised return as 6.4% and my estimated fully diversified return as 7.4% so underperforming but not much.
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ashtondav
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Post by ashtondav on Nov 26, 2018 12:38:19 GMT
Transfers out of IFISA should be free. Also, what happens with non performing loans that can’t be sold. AIUI on FC, for example non performing loans are transferred into a non isa account and all tax benefits are lost. So:
£20,000 initial isa investment.
two years later value is £22,500.
transfer request is made. BUT £1,000 of non performing loans that can’t be sold are transferred to a non isa FC account. The balance of £21,500 is transferred to the new platform.
ie tax benefits on £1,000 permanently lost, and recovered capital and income accrues in a taxable account.
but there are different rules on different platforms. How is this managed in an aggregated account?
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ashtondav
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Post by ashtondav on Nov 12, 2018 23:17:29 GMT
Been with Zopa from the start but now it’s just not competitive. RS and L W deliver 6%+ with provision funds. Zopa struggles to deliver anything like their projected returns. I’ve been withdrawing repayments for two years now, but the problem is that I am now left with all the bad loans and inevitably returns will get lower and lower.
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ashtondav
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RateSetter (RS)
Blimey
Nov 4, 2018 13:17:28 GMT
Post by ashtondav on Nov 4, 2018 13:17:28 GMT
Yes, if it doesn’t look like 6.5%+ by month end repayments will be withdrawn and placed with LW.
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